Swan Group secures £50m growth capital facility to accelerate delivery of affordable homes
Housing developer Swan Group has successfully secured a growth capital investment facility with the help of Conduit Finance to help accelerate the development of over 3,000 affordable homes across the UK.
The five-year equity facility was provided by an institutional funder who is focused on backing real estate businesses that occupy niche positions in scalable markets and represents an initial £50 million of growth capital facility.
Since 2013, Swan Group has been developing affordable housing for its partners which includes housing associations and local authorities.
The capital will help accelerate the development of over 3,000 affordable homes with an estimated Gross Development Value (GDV) in excess of £420m.
Conduit’s role consisted of helping the business transition to a more streamlined capital structure. As part of its support for Swan Group, Conduit sourced the investment partner, developed the investment pack and managed the transaction deliverables.
Phil McGinlay, Swan Group’s managing director, said: “While over 1.3m UK families languish on waiting lists for affordable housing, the trend for the construction of high-quality, affordable housing continues to decline. Securing this new growth capital facility will allow us to support our partners in housing these families much faster.
“The funding will also help us deliver our strategic growth objectives more quickly. It’s been a pleasure to work with Jamie and Jason on this transaction and we look forward to partnering with Conduit Finance in the future.”
Jamie Davidson, managing director at Conduit Finance, added: “Transferring from a time consuming, and cash intensive, SPV (Special Purpose Vehicle) by SPV funding Model, to a corporate grade facility will allow Phil and the Swan Group team to focus on building more houses.
“Following the introduction from Geoff Stansfield at DWF solicitors Conduit helped identify the most efficient capital model, and provider, for delivering the Swan Group growth plan. We’re proud to be able to assist a business which is having a positive impact on society. We look forward to supporting Swan Group during this next period of growth.”